AECOM awarded U.S. Air Force infrastructure and facilities contract under $2 billion program

Rhea-AI Summary

AECOM (NYSE: ACM) has been selected by the U.S. Air Force Civil Engineer Center to deliver planning, design, and construction management services under the $2 billion Architect-Engineer NEXT 2021 contract. This contract spans a five-year base period with an option for an additional five years. AECOM has a history of collaboration with the U.S. Air Force, having managed the previous contract as the top service provider for various projects, including military construction and Foreign Military Sales.

Positive

• Awarded a $2 billion contract with the U.S. Air Force, enhancing revenue potential.
• Continued partnership with the U.S. Air Force, reflecting trust and expertise.
• Track record of successful project execution demonstrates capability in large-scale infrastructure.

Negative

• Dependence on governmental contracts poses risks during economic downturns.
• Cyclical nature of the business may lead to revenue fluctuations.

AECOM (NYSE: ACM), the world’s premier infrastructure consulting firm, today announced that it has been selected by the U.S. Air Force Civil Engineer Center (AFCEC) to provide planning, design and construction management services through the Architect-Engineer NEXT 2021 contract for infrastructure and facilities globally. The multiple-award contract, with a combined $2 billion program ceiling, includes a five year base period and one five year option.

“AECOM’s track record of technical excellence positioned us as a trusted partner to continue our 65-year history collaborating with the U.S. Air Force to deliver innovative solutions for their dynamic missions across the globe,” said Lara Poloni, AECOM’s president. “We are proud to support the U.S. Air and Space Forces’ dominance in the skies and space for generations to come by delivering strong infrastructure built on the ground.”

AECOM has held AFCEC’s predecessor architect-engineer contract for the last five years and was the number one service provider —spanning dozens of projects around the world, including the U.S. Air Force Academy in Colorado. AECOM will continue to leverage its technical expertise on large-scale projects that involve the restoration, sustainment, and modernization of resilient U.S. Department of Defense facilities, including military construction programs and Foreign Military Sales.

About AECOM
AECOM (NYSE: ACM) is the world’s premier infrastructure consulting firm, delivering professional services throughout the project lifecycle – from planning, design and engineering to program and construction management. On projects spanning transportation, buildings, water, energy and the environment, our public- and private-sector clients trust us to solve their most complex challenges. Our teams are driven by a common purpose to deliver a better world through our unrivaled technical expertise and innovation, a culture of equity, diversity and inclusion, and a commitment to environmental, social and governance priorities. AECOM is a Fortune 500 firm and its Professional Services business had revenue of $13.2 billion in fiscal year 2020. See how we deliver what others can only imagine at aecom.com and @AECOM.

Forward-Looking Statements

All statements in this communication other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any statements of the plans, strategies and objectives for future operations, profitability, strategic value creation, coronavirus impacts, risk profile and investment strategies, and any statements regarding future economic conditions or performance, and the expected financial and operational results of AECOM. Although we believe that the expectations reflected in our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in our forward-looking statements include, but are not limited to, the following: our business is cyclical and vulnerable to economic downturns and client spending reductions; impacts caused by the coronavirus and the related economic instability and market volatility, including the reaction of governments to the coronavirus, including any prolonged period of travel, commercial or other similar restrictions, the delay in commencement, or temporary or permanent halting of construction, infrastructure or other projects, requirements that we remove our employees or personnel from the field for their protection, and delays or reductions in planned initiatives by our governmental or commercial clients or potential clients; losses under fixed-price contracts; limited control over operations run through our joint venture entities; liability for misconduct by our employees or consultants; failure to comply with laws or regulations applicable to our business; maintaining adequate surety and financial capacity; high leverage and potential inability to service our debt and guarantees; exposure to Brexit; exposure to political and economic risks in different countries; currency exchange rate fluctuations; retaining and recruiting key technical and management personnel; legal claims; inadequate insurance coverage; environmental law compliance and adequate nuclear indemnification; unexpected adjustments and cancellations related to our backlog; partners and third parties who may fail to satisfy their legal obligations; AECOM Capital real estate development projects; managing pension cost; cybersecurity issues, IT outages and data privacy; risks associated with the benefits and costs of the Power transaction and other recent acquisitions and divestitures, including the risk that the expected benefits of such transactions or any contingent purchase price will not be realized within the expected time frame, in full or at all; the risk that costs of restructuring transactions and other costs incurred in connection with recent acquisitions and divestitures will exceed our estimates or otherwise adversely affect our business or operations; as well as other additional risks and factors that could cause actual results to differ materially from our forward-looking statements set forth in our reports filed with the Securities and Exchange Commission. Any forward-looking statements are made as of the date hereof. We do not intend, and undertake no obligation, to update any forward-looking statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210319005073/en/

FAQ

What is the significance of AECOM's new contract with the U.S. Air Force?

The contract, valued at $2 billion, enhances AECOM's revenue stream and solidifies its long-standing partnership with the U.S. Air Force.

How long will AECOM's contract with the U.S. Air Force last?

The contract has a five-year base period with a potential five-year option.

What services will AECOM provide under the new contract?

AECOM will provide planning, design, and construction management services for infrastructure projects globally.

What was AECOM's previous track record with the U.S. Air Force?

AECOM was the number one service provider under the predecessor contract, managing numerous projects successfully.

How might economic conditions impact AECOM's performance under this contract?

AECOM's business is cyclical and may be vulnerable to economic downturns that could affect client spending.